From David Hassan, Gombe
The Central Bank of Nigeria (CBN) Gombe state branch has said that it would identify possible ways to enhance service delivery in the financial sector by reducing the industry cost in order to serve as sufficient institution among banks.
The Acting Governor, Central Bank of Nigeria Mrs. Sarah Alade who made the disclosure yesterday in Gombe during the cash-less sensitization exercise in Gombe also revealed that high cash usage in the economy cost implication in the financial value chain.
She explained that the average of 30 percent of branch physical space was devoted to cash logistics, adding that handling and storage of physical space accounted for 30 percent of the operational costs in the financial system. According to her, the total cost of the financial system was projected to surpass N190 million by the end of 2012 if something is not done.
She said the statistic has shown that the cost of production, distribution, processing and destruction by the CBN indicated that 90 percent of poor Nigerians are subsidizing 10 percent whom impose the huge cost of cash on the system.
The Acting governor however said that the insufficient provision of banking services was directly related to high cost structure, noting that this policy provides 10 percent of customers that make high volume cash transactions that will bear the associated cost in order to eliminate the subsidy by 90 percent the mass public of banking customers.
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
